The Provimi Group (listed on NYSE Euronext Paris), one of the world leaders in the animal nutrition business, today announces its results for 2008.


Solid year for Provimi’s Premix and Speciality businesses in Europe,
Strong performance in the Americas and Russia,
High volatility of raw material prices negatively affected operating margins in the last quarter.
Group CEO Ton van der Laan commented: “2008 showed strong turnover and profit from operations growth, driven by a strong performance of animal nutrition across most markets, while pet food activities had a difficult year. The last quarter of the year showed some slow down, especially in Poland”.
(Unaudited, in million €)
31/12/2008 31/12/2007 Change
Revenues 2,154.1 1,918.5 +12.3%
Profit from operations
before other income/(expense) 111.7 91.1 +22.6%
Profit from operations 91.9 69.4 +32.4%
Net income from continuing operations before minority interest
(9.1) 11.1 n/a
Net income from discontinuing operations 38.3 3.2 n/a
Net income - Group share 25.8 10.5 n/a
Earnings per share (in euro’s) 0.99 0.40

Sales increased by 12.3% to EUR 2,154.1 million, which was mainly a result of higher raw material costs, as well as a positive pricing and mix effect. On a like-for-like[1] basis, sales growth was 14.5%.

Profit from operations before other income/(expense) increased by 22.6 % to EUR 111.7 million, despite margin pressure in the last quarter. Exchange rates had a negative effect of EUR 1.4 million. Change in scope positively impacted profit from operations with EUR 2.8 million. On a like-for-like basis profit from operations before other income/(expense) increased by 20.9% over the period.

Other income and expense amount to EUR -19.8 million (2007: EUR -21.7 million). Included are items of a particularly significant and unusual nature. These include expenses regarding the closure of the Group’s aqua feed activities in Greece (EUR -9.0 million) as well as costs related to the Group’s strategic reorganisation of feed activities in Europe to adapt to changing markets (EUR -10.8 million).

Net financial costs increased to EUR 85.3 million (2007: EUR 43.4 million), mainly as a result of the full year impact of higher interest rate expenses related to the Group's financing arrangements put in place in the second quarter of 2007 and downward fair value adjustments to certain derivatives.

The effective tax rate of the Group is high in 2008. This arises through the cumulative effect of the Group making a greater share of its profits in higher tax jurisdictions, the non-recognition of certain deferred tax assets on certain operating losses and permanent differences and true up adjustments.

Net income from discontinuing operations arises through the after tax gain on sales related to the divestment of the aqua feed activities in Chile, Denmark and Spain in January 2008.

Net income – Group share increased to EUR 25.8 million (2007: EUR 10.5 million).

Net debt decreased to EUR 709.6 million (2007: EUR 781.1 million). The decrease was due to the proceeds from the sale of the aqua feed activities and the improvement of working capital.